ONSS great earnings report today. On-Site Sourcing Reports Fivefold Increase in Fourth Quarter Net Earnings; Company Announces Fourth Quarter EPS of $0.15 Compared to $0.03 for the Prior Year's Fourth Quarter
ARLINGTON, Va., Feb. 10 /PRNewswire/ -- On-Site Sourcing (Nasdaq: ONSS - news) today reported its financial results for the fourth quarter and year ended December 31, 1999.
For the fourth quarter of 1999, the Company reported revenues of $7.4 million compared to $7.9 million for the same quarter last year. Last year's fourth quarter had included sales of $204,790 from the Company's information technology division, which was sold in October of 1999. Earnings from operations more than tripled, from $223,039 in the final quarter of 1998 to $683,661 in the comparable period of 1999. Net income rose from $127,617, or $0.03 per share, in the fourth quarter of 1998 to $726,245 million, or $0.15 per share, in this year's fourth quarter.
For fiscal 1999, revenues were $26.7 million, an increase of about $700,000 over 1998 revenues of nearly $26 million. Earnings from operations improved dramatically, from an operating loss of $1.4 million in 1998 to operating income of $855,981 in 1999. Net income also rose significantly, from a net loss of $997,613, or $0.21 per share, last year to net income of $790,138, or $0.16 per share, this year.
Christopher Weiler, chairman and chief executive officer, notes, ``Our fourth quarter results clearly reflected the benefits of refocusing our strategy and concentrating on our core businesses. We're very pleased with our bottom-line growth.'
The Company will host a conference call for investors on Thursday, February 10, at 1 p.m. Eastern Standard Time. The phone number is 800-348-6433. The call will be replayed from 3 p.m. EST on Thursday to 3 p.m. EST on Friday, Feb. 11. The phone number for the replay is 800-633-8284 and the reservation number is 14397580.
Fourth Quarter Highlights
* The imaging business contributed revenues of more than $1.0 million
in the fourth quarter, which exceeded total imaging revenues for the
entirety of 1998.
* The improvement in net income was due primarily to margin
improvements, particularly in the imaging business.
* The proceeds from the sale of the information technology division
totaled $270,000 which is reported in the "other income" line of the
income statement.
* Excluding these proceeds, the company's EPS would have been $0.11
for the fourth quarter of 1999.
1999 Highlights
* Although revenues for the year grew modestly, 1998 revenues had
included nine months of sales from the Company's information
technology division (sold in October 1999).
* The Company's cost of sales dropped between years, from $21.7
million in 1998 to 19.3 million in 1999, reflecting increased cost
controls and focus on margin improvements.
Summary
``We've entered 2000 with a growth strategy rooted in our e-commerce initiatives and focused on national expansion,' notes Weiler. ``Based on results for the month of January and the first part of February, we've generated record sales, and our backlog is very strong.
``We expect that both revenues and profits for fiscal 2000 will show a strong improvement over 1999 results.'
On-Site Sourcing provides digital imaging, document management, litigation reprographics services, and facilities management throughout the East Coast. On-Site's clients include law firms, corporations, non-profit organizations, accounting firms, financial institutions and other organizations. On-Site currently operates in the New York City, Washington, D.C, Atlanta, Philadelphia and Baltimore markets.
This press release includes ``forward-looking statements' within the meaning of the federal securities laws, which involve uncertainties and risks. These include statements regarding events or developments that the Company expects or anticipates will occur in the future, such as statements about the Company's strategies to improve operating performance. A number of risks and uncertainties could cause actual results, events and developments to differ from expectations, including the effectiveness of programs to increase revenues and cash flow and to reduce costs, and the actions of competitors. Please refer to the Company's 1998 Annual Report on Form 10-K and its other filings with the Securities and Exchange Commission for a complete discussion of these and other important factors that could cause results to differ materially from those projected by these forward-looking statements.
ON-SITE SOURCING, INC.
STATEMENTS OF OPERATIONS
3 Months Ended Year Ended
Dec 31, Dec 31, Dec 31, Dec 31,
1999 1998 1999 1998
Revenue 7,393,662 $7,915,659 $26,670,902 $25,965,719
Costs and expenses
Cost of sales 4,748,892 6,169,965 19,350,571 21,713,447
2,644,770 1,745,694 7,320,331 4,252,272
Selling expense 986,838 634,579 2,703,756 2,645,776
Administrative
expense 974,270 888,076 3,760,594 3,025,827
1,961,109 1,522,655 6,464,350 5,671,603
Earnings from
operations 683,661 223,039 855,981 (1,419,331)
Other income
(expense)
Other income 280,182 25,377 348,054 229,292
Other expense (48,599) (60,799) (224,897) (236,574)
231,583 (35,422) 123,157 (7,282)
Earnings (Loss)
before income
taxes 915,245 187,617 979,138 (1,426,613)
Income tax (benefit)
expense 189,000 60,000 189,000 (429,000)
Net (Loss) Earnings 726,245 $127,617 $790,138 $(997,613)
Basic earnings (loss)
per common share 0.15 $ 0.03 $ 0.16 $(0.21)
Diluted earnings
per share 0.15 $ 0.03 $ 0.16 $N/A
Weighted average
shares outstanding
Basic 4,841,902 4,817,142 4,838,727 4,818,220
Diluted 4,862,277 4,871,989 4,909,924 N/A |
